10:51 am, February 13, 2012
AVERAGE used car values fell 6.3 per cent in January compared to December’s ‘record values’, says BCA’s latest report.
Despite this, January 2012 was ahead of the same month last year by 1.1 per cent.
January’s figure supports BCA’s view that December’s record values were influenced by a combination of the shortened trading period, reduced volumes and a richer model mix during the month.
BCA’s report also shows there was a decline of 2.9 per cent in average values in the fleet/lease sector, where sold volumes increased by a significant 70 per cent compared to December.
Part-exchange values surged to a new high point in January – rising 3.3 per cent. It’s the second time in three months that a record value has been established, while values fell by nine per cent for nearly-new models, however, due to a result of changing model mix.
BCA’s communications director Tony Gannon said: ‘Although January has traditionally recorded an increase in average values, 2012 saw the headline value fall month-on-month as was the case in January 2010, which may have been weather related.
‘Despite this, values are up year-on-year and, with reasonably consistent demand, prices should be maintained at an acceptable level over the coming weeks.
‘The rise in average prices at the ‘value-for-money’ end of the market continues unabated and this must be a reflection of the current economic conditions. As household budgets remain squeezed, the increased demand from motorists for affordable transport is driving values upwards.’
